Sec. 3123. Unification of deduction for organizational expenditures
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Subsections
(a)and
(b)of section 195 is amended by inserting and organizational after start-up each place it appears. Subsection
(c)of section 195 is amended by adding at the end the following new paragraph: The term organizational expenditures means any expenditure which— is incident to the creation of a corporation or a partnership, is chargeable to capital account, and is of a character which, if expended incident to the creation of a corporation or a partnership having a limited life, would be amortizable over such life. . Clause
(ii)of section 195(b)(1)(A) is amended— by striking $5,000 and inserting $10,000 , and by striking $50,000 and inserting $60,000 . Subparagraph
(B)of section 195(b)(1), as amended by subsection (a), is amended to read as follows: the remainder of such start-up and organizational expenditures shall be charged to capital account and allowed as an amortization deduction determined by amortizing such expenditures ratably over the 15-year period beginning with the midpoint of the taxable year in which the active trade or business begins. . Section 195(b)(1) is amended— by inserting (or, in the case of a partnership, the partnership elects) after If a taxpayer elects , and by inserting (or the partnership, as the case may be) after the taxpayer in subparagraph (A). Section 195(b)(2) is amended— by striking and inserting the following: amortization period.— In any case amortization period.— In any case , and by adding at the end the following new subparagraph: In the case of a partnership, subparagraph
(A)shall be applied at the partnership level. . Section 195(b) is amended by striking paragraph (3). Part VIII of subchapter B of chapter 1 is amended by striking section 248 (and by striking the item relating to such section in the table of sections for such part). Section 170(b)(2)(C)(ii) is amended by striking (except section 248) . Section 312(n)(3) is amended by striking Sections 173 and 248 and inserting Section 173 . Section 535(b)(3) is amended by striking (except section 248) . Section 545(b)(3) is amended by striking (except section 248) . Section 834(c)(7) is amended by striking (except section 248) . Section 852(b)(2)(C) is amended by striking (except section 248) . Section 857(b)(2)(A) is amended by striking (except section 248) . Section 1363(b) is amended by inserting and at the end of paragraph (2), by striking paragraph (3), and by redesignating paragraph
(4)as paragraph (3). Section 1375(b)(1)(B)(i) is amended by striking (other than the deduction allowed by section 248, relating to organization expenditures) . Part I of subchapter K of chapter 1 is amended by striking section 709 (and by striking the item relating to such section in the table of sections for such part). The heading of section 195 (and the item relating to such section in the table of sections for part VI of subchapter B of chapter 1) are each amended by inserting and organizational after Start-up . The amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after December 31, 2014.